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2024 (6) TMI 978 - AT - Income TaxIssues involved: The judgment deals with various grounds of appeal raised by the assessee against the directions of the Dispute Resolution Panel under section 144C(5) of the Income Tax Act, 1961 for the Assessment Year 2018-19. Grounds of Appeal: 1. The order being bad in law and on facts. 2. Determination of arm's length price for corporate guarantee commission. 3. Rule of consistency. 4. Loss on investment classification leading to double taxation. 5. Delay in deposit of employees' contributions. 6. Disallowance of deduction under section 80JJAA. 7. Arbitrary addition of income. 8. Short grant of Advance Tax Credit. 9. Short grant of TDS Credit. 10. Non-grant of Foreign Tax Credit under section 91. 11. Erroneous levy of Interest under section 234B. 12. Erroneous levy of Interest under section 234C. Transfer Pricing Adjustment on Corporate Guarantee: The assessee provided corporate guarantees to its subsidiaries and step-down subsidiaries, leading to Transfer Pricing (TP) adjustment on account of corporate guarantee amount. The Tribunal found that the transactions fell under international transactions as per Section 92B of the Act, including capital financing activities. The Tribunal dismissed the contention that the transactions were not international, citing relevant case law. Regarding the calculation of corporate guarantee fee, the Tribunal directed the Transfer Pricing Officer to compute the fee at 0.5%, in line with precedents, and allowed the appeal partly. Levy of Interest under section 234B/C: The grounds related to the levy of interest under section 234B/C were deemed consequential and required no further adjudication. The appeal was partly allowed for statistical purposes. Conclusion: The Tribunal addressed the various grounds of appeal raised by the assessee, particularly focusing on Transfer Pricing adjustments related to corporate guarantees. The judgment clarified the applicability of international transactions in this context and directed the computation of corporate guarantee fee at 0.5%. Other grounds related to interest levies were considered consequential.
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